Time to buy US stocks, according to JPMorgan trading desk

JPMorgan’s trading desk has split with the bank’s star strategist, who expects a decline in U.S. stocks. JPMorgan’s trading desk has different expectations for U.S. stocks from the bank’s chief strategist Marko Kolanovic. Kolanovic has been warning for some time about the risks to the global economy posed by technology stocks becoming overvalued and high interest rates. However, the bank’s trading desk, which trades stocks, said it sees a “tactical bullish trend” in U.S. stocks and believes it is a good time to buy. The trading desk, which includes Andrew Tyler, said the stance they announced for stocks in January was “too conservative” and that there was no sign that the economic recovery would “fall below trend” in the near term. Citigroup strategists, however, said investor positioning in U.S. technology stocks is so optimistic that any sell-off could trigger broader turmoil. “A broad consensus position is a risk that could reinforce the market’s turn,” the strategists, led by Chris Montagu, wrote in a Feb. 5 note. Strategists stated that positions expecting a decline in the technology-heavy Nasdaq 100 index were completely wiped out, and that the increase in bullish positions paused, but overall positioning continued to be net long.